blooloopLIVErpool - Market Overview from Philip Shepherd, PwC

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Philip ShepherdPartner – PwC

Market Overview

1: KEYNOTE: The Future

29 June 2016

UK Attractions Market Outlook

Strictly Private and Confidential29 June 2016

Deals Strategy

Draft

29 June 2016PwC

Strictly private and confidentialDraft

Tourism and Leisure spend fundamentals remain strong…


2016e

36.7

Tourist arrivals to the UK(Overseas visitors in millions)

Source: Visit Britain, Mintel – Leisure Review 2015

2016e

Value of the UK leisure industry* (GBP in billions)

82.5

1.3%Contribution to GDP

3.3%Recent/projected CAGR 2.8%

4.6%

* Out-of-home leisure, excluding travel and tourism

Total spend £22.9bn

29 June 2016PwC


..and the Government has set ambitious tourism targets..

UK Attractions Market Outlook*Out-of-home leisure, excluding travel and tourism Source: Mintel – Leisure Review 2015

2020 Vision

40 million £31.5bnvisitors

per yearin annual receipts

How it will be achieved:

• Rapid hotel growth and development of new peer to peer accommodation

• Expanding transport infrastructure

• Core inbound source markets remaining robust (I.e. France, Germany, Ireland, US)

• Rapid development of emerging inbound markets (I.e. China, Middle East)

29 June 2016PwC


Visits to UK attractions are expected to grow c. 16% by 2020


Total visits to UK attractions (2014)

British adults visiting at least one attraction in 2014

Total expected growth in visits to UK attractions 2015-2020

*Out-of-home leisure, excluding travel and tourismSource: Mintel – Leisure Review 2015

15.8%

297m

2/3

Total visits to English attractions (2014)

208m

29 June 2016PwC


Museums, galleries and historic sites account for over half of all visits to English attractions


Visitor attractions in England by attraction type, 2014(Visits in millions)

2.1%2.2% 3.3% 2.2% 1.0% 3.4%CAGR 2010-14Source: Visitor Attraction Trends in England *Main constituents are gardens, visitor/heritage centres and steam/heritage railways

Museums & art galleries

67.6m49.2m

Historic properties Country

parks

18.8m16.9m

Wildlife attractions/zoos

15.3m

Leisure/theme parks

Other*

40.6m

Total visits = 208.4m

29 June 2016PwC


The North has performed well in terms of visitor admissions

UK Attractions Market OutlookSource: Visit England

2

6

2

10

5

3

2

7

6

West Mids

South West

East Mids

London

North East

South East

Yorks/Humber

North West

East

All attractions average

Visitor admission trend 2014 – by region(Percentage increase on previous year)

Change in 2014 visitor admissions by visitor category

+8%

Overseas visitors

Local/ day trippers

+4%

29 June 2016PwC


There are big plans to improve the capacity and connectivity of Northern cities via…

UK Attractions Market OutlookSource: Civil Aviation Authority, Manchester Airport website

MANCHESTER INTERNATIONAL AIRPORT

18.6m 22.3m

2014 2009

…Expansion of Northern Airports

£1bn

Manchester Airport Regeneration

…Enhancement of Connectivity

TransNorth & HS2

Large-scale rail infrastructure projects

17.8%

Carries over 60% of all passengers in the North

Fastest growing of the top 10 airports in the

country by size

Passengers handled, Million

29 June 2016PwC


Five Northern cities rank in the top 10 of the UK hotel market index


Net increase in Northern hotel rooms

in the last 15 years

1) Cardiff2) Manchester3) Leeds4) Chester5) Liverpool6) York7) London8) Edinburgh9) Brighton10) Bath

28,000

New Northern hotel openings in the last 15

years

472

Source: Colliers International, Financial Times

Hotel Market Index - Top 10 cities

29 June 2016PwC


Branded attractions and Family Entertainment Centres are gathering momentum in the UK..

UK Attractions Market OutlookSource: News articles

Child-Geared Zones Within Leisure Parks

Family Entertainment Centres (FECs)

29 June 2016PwC


While a number of other investments and planned projects are occurring across the L&E landscape

UK Attractions Market OutlookSource: Chester Zoo website, Blackpool Pleasure Beach website, Paramount London website

29 June 2016PwC


For Leisure and Entertainment growth look to Middle East…


31.2

16.5

9.4

11.2%

2021F

9.8%

20152009

..but what is going to draw them there?

Tourist arrivals to the UAE (hotel guests in millions)

29 June 2016PwC


There are 8 theme parks set to open by the end of 2019

UK Attractions Market OutlookSource: UNCTAD, IMF- World Bank, WTTC and PwC Analysis

IMG Worlds of Adventure 2016

Ferrari World2010 Dubai

Parks and Resorts2016

20th

Century Fox World2018

Six Flags2019

Warner Bros World2018

18 million total theme park visits in UAE by 2021

29 June 2016PwC


China is also aggressively developing its theme park sector, with total visits expected to double within 5 years


China will surpass the US as the biggest theme park

market in the world by 2020

2015

14.2%

2020

120

221

Annual Visits to Chinese Theme Parks (Visits in millions)

Source: AECOM, Bloomberg

China is building theme parks faster than any other country in the world...

29 June 2016PwC


It has a big pipeline of planned theme parks


Key local players

Source: South China Morning Post, ABC News, Company Websites

21Theme parks

opened in 2015

20Theme parks currently

under construction

~300Total supply of theme parks in the country

International brands

29 June 2016

PwC Hospitality & Leisure Partner:

Philip ShepherdPwC Partner

20+ years strategy consulting in the Leisure,

Hospitality and Media sectors

Direct line:: + 44 (0) 20 7804 9366

E-mail:[email protected]

Contact information:

Thank you…

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blooloopLIVErpool - Market Overview from Philip Shepherd, PwC